Wall Street posted its worst monthly performance since March as technology sector weakness and hotter-than-expected producer inflation weighed on sentiment. The S&P 500 index fell 0.9% for February, while the tech-heavy Nasdaq dropped 3.4%, marking their worst months since March last year. Investors grappled with geopolitical tensions, trade developments, and growing concerns about AI disruption.

Nvidia, the world's most valuable company, slid over 5% despite strong quarterly earnings as questions about shareholder returns and profit-taking pressured the stock. Producer price index data came in hotter than expected, with January PPI rising 0.5% month-over-month and 2.9% year-over-year, exceeding consensus estimates. This inflation data could reinforce the Federal Reserve's caution on rate cuts.

Microsoft-backed OpenAI announced a record $110 billion investment round, the largest ever for a private tech company, with commitments from SoftBank, Nvidia, and Amazon. Meanwhile, Netflix declined to raise its offer for Warner Bros Discovery after Paramount Skydance submitted a superior $31 per share bid, potentially ending one of the media industry's largest bidding wars.